Coming Up: Repatriation, A HUGE Huge Tax Giveaway To Big Corporations

Dave Johnson

Washington insiders are saying that one deal Republicans and President Obama think they can make is a deal to let corporations off the hook for taxes they owe if they “bring back” the money the multinational corporations have stashed outside of the country. The deal is that this is in exchange for using some of it to fix up our country’s crumbling infrastructure. Here is why this is a bad deal.

A Huge tax Loophole

You have probably heard that big companies use all kinds of schemes to shift profits out of the country to avoid paying taxes. A loophole in our tax laws lets companies dodge (“defer”) taxes on “offshore” profits until they “repatriate” the money, meaning “bring it back into the country.” Of course it would be easy for Congress to just fix this loophole, but this is about really big money, and big money is able to keep loopholes like this from getting fixed.